Leveraging Philanthropic Capital To Disrupt
Start-up Investing & Public Equity Acquisition
Mission
 SoTech Ventures unlocks access to $865B dollars in
assets held within philanthropic institutions by providing
our portfolio companies with an innovative operating
model that allows their business assets to be seamlessly
transitioned between private and non-profit corporate
structures
 The result incentivizes companies to equally balance
maximizing shareholder value with maximizing positive
social/environmental impact
Problems Entrepreneurs Face
 Crowd-funding, p2p platforms and funding portals
all rely on “high quality deal flow” to attract
investors, rejecting 93% of startup applicants
 Venture capitalists and angel investors are focused
on finding/funding the 1.28% of startups that will
become billion dollar unicorns
 More than 588,000 early-stage ventures will remain un-
funded annually, yet continue to press on without
alternative financing options
Problems Corporations Face
 Fiduciary responsibility to focus on shareholder
value in a world of increasing consumer & investor
emphasis on CSR (corporate social responsibility)
 Lack of efficient mechanisms for generating
social/environmental impact without dampening
profits
Why We Exist
 To leverage the high risk appetite of
philanthropic capital, direct funds into social
enterprise projects housed within for-profit
entities and utilize this form of cheap capital to
add value to our portfolio companies
Our Model
Our Process For Startup Ventures
• Acquire technology/digital
assets via donation
• Immediately license assets
back to the donor in
exchange for equity or
revenue share
Acquisition
• Re-engineer startup to
generate SROI
• Secure philanthropic capital
to subsidize short-term and
long-term technology
development and human
capital/staffing costs
Investment • As the exclusive license
holder of the technology,
donors will have lifelong
access to both public and
private capital markets to
accelerate growth
Value-Add
Our Process For Public Corporations
• Acquire business/digital
assets from distressed or
newly developed product
lines via donation
• Immediately license assets
back to the corporation in
exchange for stock
Acquisition
• Re-engineer the product
line to generate SROI and
attract philanthropic
capital
• Secure capital to launch or
re-launch the product line
via grants & donations
Investment • Market the
socially/environmentally
impactful product line to
consumers and investors to
highlight an authentic
commitment to CSR
Value-Add
How We Stack Up
SoTech
Ventures
VC/PE
Investors
Portfolio Support
 SoTech Ventures conducts grant writing activities for all portfolio
companies; portfolio companies are welcome to leverage their own
resources to attract donations & grants as well (i.e. crowd-funding,
etc)
 SoTech Ventures oversees all social impact metrics tracking,
evaluation and reporting activities that position portfolio
companies to raise follow-up support from philanthropic funders
 SoTech Ventures monitors all IRS non-profit compliance standards
to ensure legal good-standing
 SoTech Ventures leverages its’ network of relationships to connect
portfolio companies with pro bono resources, sponsors and impact
investors as appropriate
Strategic Benefits
 Grants & Donations can be used to accelerate growth and
achieve traction through several rounds of
financing/development, from pre-seed through Series A
 As more philanthropic capital is injected into a portfolio
company, it will have a direct impact on increasing valuations,
stock prices, etc
 During your time as a SoTech portfolio company, you can
leverage our tax-exempt status to allocate tax savings back
into the development of your venture (for seed-stage
acquisitions only)
Grants ≠ Traditional Financing
Though there are many clear benefits to securing philanthropic
capital, it is important for prospective portfolio companies to
also know how grants differ from traditional financing
 The typical grant writing process (led by SoTech Ventures)
from grant submission to having the funds in the bank can
take 6-9 months, which is much slower than other due
diligence and funding processes which can be as short as 1-2
months
 The grant writing cycle is perpetual in that multiple grants
can be pursued and secured simultaneously. Also, it is possible
to secure grant funding year after year so long as social
impact metrics are met and/or exceeded

Investing Will Never Be The Same

  • 1.
    Leveraging Philanthropic CapitalTo Disrupt Start-up Investing & Public Equity Acquisition
  • 2.
    Mission  SoTech Venturesunlocks access to $865B dollars in assets held within philanthropic institutions by providing our portfolio companies with an innovative operating model that allows their business assets to be seamlessly transitioned between private and non-profit corporate structures  The result incentivizes companies to equally balance maximizing shareholder value with maximizing positive social/environmental impact
  • 3.
    Problems Entrepreneurs Face Crowd-funding, p2p platforms and funding portals all rely on “high quality deal flow” to attract investors, rejecting 93% of startup applicants  Venture capitalists and angel investors are focused on finding/funding the 1.28% of startups that will become billion dollar unicorns  More than 588,000 early-stage ventures will remain un- funded annually, yet continue to press on without alternative financing options
  • 4.
    Problems Corporations Face Fiduciary responsibility to focus on shareholder value in a world of increasing consumer & investor emphasis on CSR (corporate social responsibility)  Lack of efficient mechanisms for generating social/environmental impact without dampening profits
  • 5.
    Why We Exist To leverage the high risk appetite of philanthropic capital, direct funds into social enterprise projects housed within for-profit entities and utilize this form of cheap capital to add value to our portfolio companies
  • 6.
  • 7.
    Our Process ForStartup Ventures • Acquire technology/digital assets via donation • Immediately license assets back to the donor in exchange for equity or revenue share Acquisition • Re-engineer startup to generate SROI • Secure philanthropic capital to subsidize short-term and long-term technology development and human capital/staffing costs Investment • As the exclusive license holder of the technology, donors will have lifelong access to both public and private capital markets to accelerate growth Value-Add
  • 8.
    Our Process ForPublic Corporations • Acquire business/digital assets from distressed or newly developed product lines via donation • Immediately license assets back to the corporation in exchange for stock Acquisition • Re-engineer the product line to generate SROI and attract philanthropic capital • Secure capital to launch or re-launch the product line via grants & donations Investment • Market the socially/environmentally impactful product line to consumers and investors to highlight an authentic commitment to CSR Value-Add
  • 9.
    How We StackUp SoTech Ventures VC/PE Investors
  • 10.
    Portfolio Support  SoTechVentures conducts grant writing activities for all portfolio companies; portfolio companies are welcome to leverage their own resources to attract donations & grants as well (i.e. crowd-funding, etc)  SoTech Ventures oversees all social impact metrics tracking, evaluation and reporting activities that position portfolio companies to raise follow-up support from philanthropic funders  SoTech Ventures monitors all IRS non-profit compliance standards to ensure legal good-standing  SoTech Ventures leverages its’ network of relationships to connect portfolio companies with pro bono resources, sponsors and impact investors as appropriate
  • 11.
    Strategic Benefits  Grants& Donations can be used to accelerate growth and achieve traction through several rounds of financing/development, from pre-seed through Series A  As more philanthropic capital is injected into a portfolio company, it will have a direct impact on increasing valuations, stock prices, etc  During your time as a SoTech portfolio company, you can leverage our tax-exempt status to allocate tax savings back into the development of your venture (for seed-stage acquisitions only)
  • 12.
    Grants ≠ TraditionalFinancing Though there are many clear benefits to securing philanthropic capital, it is important for prospective portfolio companies to also know how grants differ from traditional financing  The typical grant writing process (led by SoTech Ventures) from grant submission to having the funds in the bank can take 6-9 months, which is much slower than other due diligence and funding processes which can be as short as 1-2 months  The grant writing cycle is perpetual in that multiple grants can be pursued and secured simultaneously. Also, it is possible to secure grant funding year after year so long as social impact metrics are met and/or exceeded